The S&P 500 Index is currently at 2,500. You manage a $20 million indexed equity portfolio. The S&P 500 futures contract has a multiplier of $50. a. If you are temporarily bearish on the stock market, how many contracts should you sell to fully eliminate your exposure over the next six months?

b. If T-bills pay 1.2% per six months and the semiannual dividend yield is 1.6%, what is the parity value of the futures price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)